The actions of Global Drugmakers fell in all areas on Wednesday after the president of the United States, Donald Trump, reiterated the plans for an “important” fee on pharmaceutical imports, threatening a supply chain intertwined around the world and, as his country of specific reciprocal rates of his country entered into force, which caused more pain in the global market.
Pharmaceutical imports were initially exempt from the first set of Trump reciprocal tariffs last week, but since then its administration has indicated that taxes are arriving on the sector, which in the past has been excluded from such actions.
The president of the United States has said that tariffs encourage pharmaceutical companies to transfer operations to the US. UU. However, analysts and companies have expressed concern about the difficulty in establishing manufacturing in the United States.
The actions of the main manufacturers of American medicines such as Gilead Sciences, Pfizer, Merck and Eli Lilly fell between 2% and 4% in trade prior to trade.
In Europe, a basket of medical care. SXDP fell 5% to the lowest since October 2022, which leads losses between sectoral rates in the Stoxx 600 regional. The index was directed to its greatest fall of one day since March 2020.
Trump had also threatened his homework after his first set of “reciprocal” tariffs exempt from pharmaceutical products. Trump has not said when and how much he plans to increase taxes on pharmaceutical imports.
“While the details are scarce, we strongly oppose tariffs on any pharmaceutical product; they are likely to do little to change manufacturing to the United States,” said BMO analyst Capital Markets Evan Seigerman.
“Given the complexity of the pharmaceutical supply chain, we do not expect the industry to make important changes. These current rates are being carried out under emergency powers, which will last until the end of the current administration and could end before with an act of Congress,” Seigerman added.
Europe and the United States have interconnected supply chains for medicines. The United States depends on medicines produced in part in Europe that generate hundreds of billions of dollars in revenue.
Exports of EU medical and pharmaceutical products to the USA. According to the latest Eurostat data.
Barclays analysts said in a note last week that Europe represented around 80% of the United States commercial deficit in Biofarma.
They highlighted companies with a large part of US income or limited manufacturing sites in the United States as potentially affected, such as Argenx, UCB or Novo Nordisk.
Astrazeneca, GSK, Roche, Sanofi and Novartis shares fell between 5% and 6.5% in Europe.
In contrast, companies such as Astrazeneca, Roche and Sanofi could be more immune given their diverse global manufacturing network and their increase in manufacturing capabilities in the United States, Barclays analysts said.
Meanwhile, Indian pharmaceutical actions closed almost 2% lower, dragging the NIFTY 50 reference point for 0.6%.
IPCA Laboratories, Glenmark Pharma and Biocon were the main losers by percentage in the pharmaceutical index in Mumbai, which ended the negotiation session between 4% and 5.5% lower.
Pharmaceutical exports of India to the United States include mainly generic, or cheapest versions of popular drugs. The United States represents a third of general pharmaceutical exports of India.
